Some Good Steals...

caprice · Nov 21, 2005

AMITBE said:

Hi Amit

Thanks for the analysis.. But I did a sold off my 200 shares @ 277 and did a short at the same rate for 500 shares and bought 500 again at 267. So I think I fairly recovered the money.. plus got some profit.. I think I still need a lesson in Patience.. which I do not have at all... coming to anything..

As for reliance.. I too am waiting to find the details of the demerger and date of alotment of the bonus share announced.. can you suggest any sites for it.. where i can take out the info.

Thanks and appreciate your timely assistance

Nishant

AMITBE · Nov 22, 2005

Hi Roneeth..Seen you at the forum...Bata has broken out now and 170-175 is expected resistance. Has broken new ground and should be a hold for now.
Regards.

roneeth · Nov 22, 2005

AMITBE said:

Hello Amit!

Yes.....It has...

Thanks for the concern as always....

Take care

Roneeth

ssnkumar · Nov 22, 2005

Amit,

Can you throw some light on this "Rights Issue"?
Is it like bonus shares where the price of the share is brought down?
Is it beneficial for the investor?

Please do elaborate.

Regards,
Narendra

AMITBE · Nov 22, 2005

ssnkumar said:

Hi Narendra, on Rights Isue:
When company needs money for expansion for whatever reason, one option to consider is to ask the public for money. There are ways of doing this:
IPO: When a company comes out with an Initial Public Offering, it offers shares to the public. The public buys the shares and the company gets money. These shares are then listed on the stock exchange for the public to buy and sell. Anyone can apply for these.
New Issue: If a company that is already listed is coming out with a fresh sale of shares, it is called the new issue. Here again anyone can apply for these.
Rights Issue: Sometimes, a companies may come out with a fresh batch of shares but may choose not go to the public (as in a new
issue). It may just approach only the current shareholders (people who own the shares of that company). This is called a rights issue.
What it means is that only the current shareholders have a right to buy these shares.
Simply put, rights issues are shares issued by a company only to its existing shareholders. Always in a Rights Issue the price asked for is at a discount to the prevailing price of the stock being traded currently.

The advantage of a Rights Issue are, the shares will be cheaper than the current market rate. When a company offers new shares via a rights issue, it is usually at a discount to the current market rate.
If the market price of the share is Rs 120, the company may offer the shares for Rs 90. So you get more shares at a cheaper rate than what you would get if you buy it from the market.
However, after the announcement of the rights issue, the share prices may become volatile and fluctuated widely. It's generally seen that the price will go up because investors now want to buy the shares so that they can avail of the rights issue.

The downside of Rights Issue is that the shares offered are not free of cost, unlike a bonus which comes more like a gift.

Hope this helps in your understanding.
Regards

caprice · Nov 22, 2005

Hi Amit..

Do you think is this the right time to invest in Reliance and Gateway Distributis Limited.. or should I wait for a dip..

Thanks

Nishant

ssnkumar · Nov 22, 2005

AMITBE said:

Hi Narendra, on Rights Isue:
When company needs money for expansion for whatever reason, one option to consider is to ask the public for money. There are ways of doing this:
IPO: When a company comes out with an Initial Public Offering, it offers shares to the public. The public buys the shares and the company gets money. These shares are then listed on the stock exchange for the public to buy and sell. Anyone can apply for these.
New Issue: If a company that is already listed is coming out with a fresh sale of shares, it is called the new issue. Here again anyone can apply for these.
Rights Issue: Sometimes, a companies may come out with a fresh batch of shares but may choose not go to the public (as in a new
issue). It may just approach only the current shareholders (people who own the shares of that company). This is called a rights issue.
What it means is that only the current shareholders have a right to buy these shares.
Simply put, rights issues are shares issued by a company only to its existing shareholders. Always in a Rights Issue the price asked for is at a discount to the prevailing price of the stock being traded currently.

The advantage of a Rights Issue are, the shares will be cheaper than the current market rate. When a company offers new shares via a rights issue, it is usually at a discount to the current market rate.
If the market price of the share is Rs 120, the company may offer the shares for Rs 90. So you get more shares at a cheaper rate than what you would get if you buy it from the market.
However, after the announcement of the rights issue, the share prices may become volatile and fluctuated widely. It's generally seen that the price will go up because investors now want to buy the shares so that they can avail of the rights issue.

The downside of Rights Issue is that the shares offered are not free of cost, unlike a bonus which comes more like a gift.

Hope this helps in your understanding.
Regards

Thanks for the clear answer Amit.
I want your suggestion for the Rights Issue of Hindalco.
Is it beneficial in the long term?

Regards,
Narendra

AMITBE · Nov 23, 2005

caprice said:

Hi Nishant...thought I'd reply to this as it's pending.
Gateway is showing a good base at 260. You could consider taking it above a close of 266 when it appears well sustained there with a stop at 260 though 254 would be quite good.
Reliance is sticking at 828-830 and should it fall off from here, 810-817-824 are immediate supports and further down 795-788-781 are also good. Look for price weakness and then support at the levels mentioned to consider entry. To the up past 830, 839-847-855 are the next immediate levels it may see.
All this is subject to the market conditions, and should the market run up to test the previous high areas, Reliance would certainly have a fair deal to with it. If you can hold in the mid to long term, it'll give great profits.
Check with me from time to time if you decide to go in.
Good luck.

nirmald · Nov 23, 2005

Dear Amit,

Hi, I was saddened to read that u were going to take a break, will miss ur inexpensive support and guidance. Then again i was relived when i read that u will be on fifty fifty. Just make sure that u dont stop sharing ur great knowledge with ppl like me who are continuing to benefit immensely from it. By Best wishes to U.

Amit if u dont mind, can u advice me about Aegischem. I have entered it arnd 236.5 now its moving between 270-280 . Shud i book profits or shud i wait.

Thanks in Advance.

Rgds
Nirmal

AMITBE · Nov 23, 2005

Roneeth, if you are here...
Bata has reached some difficult levels at 175-177 with supports at 172 and 167.
If you like you could book out two thirds of your position here and hold the rest for the next target area of 178-182. Can't say when it'll get there...a few days or weeks? It'll rally on after a close above 177. For now it seems quite high into this move.
Or take it all some place here and hand it over to the next buyer...you'll have earned good profits in addition to some good Karma!

Regards.

Some Good Steals...

caprice

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AMITBE

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roneeth

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ssnkumar

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AMITBE

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caprice

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ssnkumar

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AMITBE

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nirmald

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AMITBE

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